Nvidia shares climbed nearly 9% following the company’s earnings announcement, which included forward-looking revenue guidance that reassured investors about the durability of artificial intelligence demand. The stock movement added approximately $440 billion to the company’s market capitalization. This performance marked a potential reversal of a pattern in which Nvidia’s stock had declined on the trading day immediately following earnings releases in each of the four previous quarters, despite meeting or exceeding analyst expectations.
The chipmaker’s financial chief projected 70% revenue growth for fiscal 2028, spanning February 2027 through January 2028. CEO Jensen Huang indicated that underlying demand substantially exceeded this forecast level, though the company remained constrained by manufacturing capacity. Huang noted that Nvidia has achieved greater visibility into its supply chain, enabling the company to provide multi-year revenue forecasts for the first time. The company emphasized that artificial intelligence had reached an “inflection point,” with demand expanding dramatically beyond the single major research laboratory that had driven adoption a year earlier.
Nvidia highlighted the diversification of its customer base beyond major cloud service providers. The company’s AI Clouds, industrial and enterprise customer segment generated $40.3 billion in quarterly sales, representing a 138% increase on an annual basis. The earnings results prompted analysts to revise their outlook on the company’s valuation and growth prospects. Several other semiconductor manufacturers, including Broadcom and Intel, also posted gains following Nvidia’s announcement, while cloud computing stocks such as Nebius rallied and CoreWeave remained essentially unchanged.
Supply constraints remained a limiting factor on growth. Taiwan Semiconductor Manufacturing Company, Nvidia’s primary manufacturing partner, continued to operate at capacity constraints, and memory chip supplies also remained tight. Additionally, analysts flagged emerging competitive threats from custom semiconductors being developed by major technology companies and artificial intelligence research organizations seeking to reduce dependence on Nvidia’s processors. Separately, reports indicated that Nvidia had agreed to acquire open-source platform Hugging Face for $12.9 billion, a transaction that would consolidate a widely used hub for artificial intelligence model sharing under Nvidia’s ownership.
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